If you’re getting married and plan to buy a home, please continue reading. Rather than registering at Macy’s or Pottery Barn, you might want to consider the FHA Bridal Registry. This program allows couples to register with a lender, then funds may be deposited by friends and relatives directly into the Bridal Registry Account, or given by cash or check to the couples or individuals for deposit. The money gifts earn interest, and can be used as a down payment towards an FHA mortgage. Coming up with a down payment is one of the hardest things for young couples to do when they decide to buy a home. I have a feeling many of those couples would rather have help with a down payment than a new blender or coffee maker.
You might be wondering how to get started. Generally, couples planning to get married (and other individuals) will contact a participating lender and request that a registry account be established in their names. This account will take the guesswork out of gift selection. These gifts can be given with the assurance that the donors are providing the couples or individuals with an opportunity to purchase their first home. Bridal couples or individuals are not obligated to use the money in the Bridal Registry Account for a down payment on a home. The couples or individuals control how the funds will be used, and if their plans change, they can simply withdraw the money and use it for something else. Also, there is no requirement that the bridal couple be married prior to closing the mortgage loan. Even better, on the HUD website, it states that this registry is not just for couples about to get married. It is applicable to “other legitimate occasions where substantial gifts are typically received by an individual or individuals that may in turn be applied toward the purchase of a home.” Think civil unions, college graduation, or even baby showers.
If you could benefit from this down payment assistance, contact me and I’ll put you in touch with a participating lender.